SAP offers organisational structures to be able to represent your company structures. In FI the most important organisational structure is the company code. The company code is the structure used for your legal/fiscal reporting. At company code level you will be able to create a balance sheet and Profit Loss Statement. Your VAT is also handled at company code level.

As for the other above mentioned structures in FI (Company and business area):
* you can assign multiple company codes to a Company (see company as your Holding Company or Group) so that you can consolidate at Company level.
* business area is a seperate organisational structure (company code independent) in SAP that provides an additional evaluation of your financial postings. Usually it is used in conjuction with the "Division" in SAP module Sales and Distribution so that you can create a profit and loss statement per "Division" (as the division is then linked to a business area). The business area is provided as an additional account assignment when posting in FI.
* if using the NEW-GL, you will also have the possibility of using segment as an additional evaluation of your finiancial postings.
* to make it a bit more confusing: with NEW-GL you also have the Profit Center as an additional evaluation (and organisational structure).

As for the other above mentioned organisational structures:
* operating concern is only relevant for CO-PA and exists at client level
* controlling area is the most important organisational structure for SAP-Controlling (CO). It has a 1:n relationship with company code in FI. To be able to assign multiple company codes to a controlling area all company codes must have the some operational (leading) chart of accounts and the same base fiscal year variant (the special periods do not have to be the same)
* a plant is an organisational structure necessary for Logistics in SAP and must be assinged to a company code. multiple plants can be assigned to a company code. company code to plant is 1:n.
* Purchase Organisation and Sales organsiation are organisational structures for Logistices as well (for MM and SD resp). These can be assigned to one company code if required, but can also be used for multiple company codes/plants.

DEVENDRA NAIDU BOLLINENI |

| 22 Apr 2008 7:27 am

Helpful answer

organisational structure is required in all the basic settings (Fi)in the below find o.structure
Company----->company codes---->business areas.
this is called org.structure

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